Lords Group reports record annual revenue, lower adjusted earnings

(Sharecast News) - Lords Group Trading reported record annual revenue but lower adjusted earnings on Wednesday, as subdued construction markets weighed on margins.

The AIM-traded building materials distributor said revenue rose 8.3% to £472.8m for the year ended 31 December, from £436.7m a year earlier.

Like-for-like sales increased 0.7%, despite weak end markets.

Adjusted EBITDA fell 6.2% to £21.0m from £22.4m, while the adjusted EBITDA margin narrowed to 4.4% from 5.1%.

Adjusted operating profit declined to £9.2m from £10.4m, and adjusted profit before tax fell to £2.8m from £3.8m.

On a statutory basis, operating profit fell to £1.1m from £4.3m, while the group reported a pre-tax loss of £5.2m, compared with a £2.6m loss in 2024.

Basic losses per share widened to 2.68p from 1.19p.

The total dividend was reduced to 0.52p per share from 0.84p.

Lords said merchanting like-for-like revenue grew 3.1%, driven by its customer service-led model, market share gains and disciplined pricing.

In plumbing and heating, margins improved by 60 basis points, helped by product mix and margin management, while renewables revenue increased 57%.

Net debt fell 59% to £13.4m from £32.4m, significantly strengthening the balance sheet.

The group said it had made strategic progress during the year, including the acquisition of online building materials platform CMO in June 2025, which expanded its digital capability and national reach.

Lords also opened three new merchanting branches and took structural cost actions, particularly following a strategic review of its plumbing and heating business.

After the year ended, the company opened a further dual site in Bury St Edmunds, housing Lords Builders Merchants and Advance Roofing.

It also agreed a new three-year £65m banking facility to support organic growth and selective acquisitions.

Chief executive Shanker Patel said Lords had made further progress in positioning the group for growth despite a challenging backdrop.

"Whilst market conditions are likely to remain subdued in the near term, with ongoing uncertainty around inflation and interest rates, we have built a more diversified, more scalable business and the group is now better positioned operationally and strategically than at any point in its recent history," he said.

Patel said the group expected a "disproportionate improvement in profitability" as markets recover, supported by operating leverage across its branch network and digital platform.

At 0846 BST, shares in Lords Group Trading were down 1.45% at 17p.

Reporting by Josh White for Sharecast.com.

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